The Securities and Exchange Commission today announced charges against Blessing K. Egbon, the former CEO of Milwaukee-area fuel services company Exit 7C, Inc., for fraud and misappropriation of investor funds.

According to the SEC's complaint, between August 2016 and March 2020, Egbon offered and sold $6.47 million in securities to at least 14 investors in Exit 7C. Egbon allegedly provided the investors with fictitious revenue and profit figures and forged bank statements showing that Exit 7C was a profitable, growing company, when in fact the company had never made a profit. In addition, shortly after receiving the investors' funds, Egbon allegedly began misappropriating the money and spending it on various personal expenses, including visits to nightclubs, chartered jets, villa rentals, and tickets to sporting events. According to the complaint, Egbon misappropriated approximately $2.15 million from Exit 7C's investors.

The SEC's complaint, filed in federal district court in the Eastern District of Wisconsin, charges Egbon with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder and seeks injunctive relief, an officer and director bar, a penny stock bar, disgorgement with pre-judgment interest, and civil penalties.

The SEC's investigation was conducted by Som P. Dalal and Rebecca C. Hollenbeck and supervised by Anne C. McKinley and John E. Birkenheier of the Chicago Regional Office.